Cologne prosecutors searched Blackrock offices

Staff Writer | Wednesday November 7, 2018 8:06AM ET

Europe Friedrich Merz was not suspected of wrongdoing

German state prosecutors in Cologne executed a search warrant at Blackrock’s offices in Munich on Tuesday, a spokesman said, adding that the company’s country chairman, Friedrich Merz, was not suspected of wrongdoing.

The prosecutors are investigating a fraud known as cum-ex that typically involved trading company shares rapidly around a syndicate of banks, investors and hedge funds to create the impression of numerous owners, each entitled to a tax rebate. ■